The Sunday News
Wilson Dakwa, Business Reporter
THE exemption of goat and sheep meat from Valued Added Taxation (VAT) will promote competitiveness by reducing costs associated with the meat products, an expert said.
Speaking during a national budget policy review symposium organised by Chronicle in partnership with IMC Worldwide in Bulawayo last week, economist and researcher Dr Nyasha Kaseke said the inclusion of VAT on goat and sheep meat products led to their prices being more expensive compared to other meat products.
“The Finance and Economic Development Minister’s proposal to exempt goat and sheep meat from the 15 percent VAT will promote competitiveness as costs relating to the meat products were very high.
“This scenario was making goat and sheep meat more expensive compared to other meat products such as beef, chicken and pork which are exempted from VAT,” said Dr Kaseke.
Matabeleland Goat Sheep Poultry Trust board chairman Mr Dingaan Ndlovu said the tax exemption would go a long way towards reducing the cost of production in rearing the small stock.
“The minister’s proposal to exempt goat and sheep from VAT is a positive move as it will reduce the cost of production associated with sheep and goat meat. This will result in the increase of sheep and goat meat production and availability in the market,” said Mr Ndlovu.
Presenting the 2018 National Budget proposals Finance and Economic Development Minister Patrick Chinamasa said the exemption of goat and sheep meat from VAT levelled the playing field with other meat products.
“Whereas other meat products such as beef, chicken and pork are exempt from VAT, meat of goats and sheep is liable to a 15 percent standard rate of VAT. This scenario makes goat and sheep meat more expensive relative to other meat products. In order to level the playing field, the 2018 Budget proposes to exempt goat and sheep meat from VAT, with effect from 1 January 2018,” he said.
Dr Kaseke highlighted that there was a need to improve production so as to increase foreign currency generation through exports.
Goat meat has the potential to be a major foreign currency earner as it has a market in the United Arab Emirates, Indonesia, Uganda and Angola, which require 25 tonnes of goat meat per week. The export price of goat meat ranges from $9 to $10 per kilogramme.
“At the moment, we are conducting research on how much goat meat is being exported from the country. We are also researching on how we can boost goat meat exportation although our current main focus is on satisfying the local market,” said Mr Ndlovu.
According to the Department of Agriculture Research and Extension Services at Matopo Research Centre, common goat breeds in Zimbabwe include the Matebele, Mashona, the Boer goat and the Kalahari.
Goat farming is usually hindered by various factors such as high kid mortality and lack of good animal husbandry practices.
At least 97 percent of the estimated 3,3 to 3,4 million national goat herd is owned by smallholder farmers who rarely breed goats for commercial purposes despite the fact that the country has potential to export goat products.
According to a research conducted by the Department of Livestock Production and Development, Nkayi District has the largest number of goats nationally although the quality of the goats is not at par with the standards required for exportation.
This is the case in most of the nation’s provinces save for Mashonaland East, which has the best breed of goats in the country. -@WilsonDakwa1
